Germany Announces no tax on crypto sales

Katja Hessel is a state secretary in the German parliament. She thinks that people who buy and sell digital currencies could get tax breaks. Also, if they keep their Crypto Trader assets for at least a year before selling them, they won't have to pay taxes on the money they get from selling them.

In a 24-page set of rules put out by the Federal Finance Ministry of Germany, the terms "airdrops," "staking," "master nodes," "mining," and "tax charges on sales and purchases of cryptocurrencies" are explained.

Germany will put out a guide to its sales taxes on cryptocurrencies.

For the first time in German history, the country's most important banks and sixteen of its federal states got together to talk for a long time about how to tax cryptocurrencies.

During the summer before, the state ministers planned to meet with Bitkom, market players, and individual traders to hear their ideas.

One of the most important things to know about taxes on trading digital assets is whether or not lending or staking bitcoin extends the tax-free period to 10 years. The same thing happens when people buy homes with the intention of renting them out.

Patric Hansen, a well-known EU policy expert and crypto business consultant for Presight Capital, says that the "most important demand" of the German cryptocurrency community is for restrictions to be eased for at least 10 years.

The government paper goes into detail about airdrops, which are a common way to get new customers and money by giving away crypto tokens. Yuga Labs gave the owners of Bored Ape NFT a number of ApeCoins, which they can use, for example, in the upcoming BAYC gaming environment.

Also, the German finance ministry said that anyone who got airdrops and used the exchange option to get access to airdrops in exchange for social network posts or personal information would have to pay income tax. Users may have free access to airdrop through the exchange feature.

Bitcoin has lost 0.85% of its value and is now worth $28,754. Tradingview.com has a chart of the Bitcoin to U.S. Dollar exchange rate.

People who don't do anything to get money from an airdrop won't have to pay income tax on it. But like other gifts, airdrops have to be taxed.

Hansen brought up an important part of the law that affects workers who are paid in cryptocurrencies. If a cryptocurrency token isn't listed on any exchange or doesn't have any value on the market, the group in charge of regulating cryptocurrencies won't count it as taxable property. 

So, it looks like people who get paid in cryptocurrency won't have to pay taxes on that money if they don't trade it. Hansen also thinks this is good news. But he says that the letter doesn't have all of the facts. 

The government still thinks that betting on digital assets across whole nodes is a business. Unlike the money that third-party staking providers make, the money that full-node operators make has "significant tax implications."

Investors may be happy about this.

After a year of ownership, Bitcoin, Ethereum (ETH), and other cryptocurrencies can be sold in Germany without paying taxes. People have said the same thing about gambling. When it comes to Bitcoin (BTC), Ethereum (ETH), and other cryptocurrencies, the Federal Ministry of Finance is likely to keep working closely with the top tax authorities of the federal states and with the help of trade groups. 

There will also be help from groups in the industry. Before this, investors who wanted to deduct the value of a cryptocurrency from their taxes had to hold on to it for at least ten years before they could sell it without paying taxes on it. Investors no longer have to pay taxes when they sell bitcoin assets. Anyone can invest in cryptocurrencies and earn a fortune with user-friendly crypto trading platform.  

The new rules cover a wide range of topics, such as trading, mining, staking, lending, hard forks, and token airdrops. Since a string of bad things happened, the bitcoin market has been very slow. But things are getting better, and you can see the difference more now than you could a few weeks ago.